QUEBEC CITY, QUEBEC–(Marketwired – Oct. 1, 2015) – Junex Inc. (TSX VENTURE:JNX) (“Junex” or the “Company”) is pleased to provide an update about its exploration program on its Galt Oil Property.
Galt No. 5 Horizontal Well
The Galt No. 5 Horizontal well, the second in a series of four horizontal exploration wells forming the current exploration phase on Junex’s Galt Oil Property, started drilling on July 24th and was drilled to a total measured depth of 2,582 metres. This well was drilled in closer proximity to the Troisième Lac Fault zone than previous wells drilled by Junex at Galt.
After having drilled the vertical portion of the well and immediately prior to installing the intermediate casing therein, a drillstem test (“DST”) was performed in the upper portion of the Forillon Limestone reservoir from which a column of 475 meters (8 barrels) of light crude oil was recovered in the drill string during a total flow period of 1.1 hours. The intermediate casing was then installed followed by the drilling of a horizontal leg into the lower portion of the Forillon Limestone and the upper portion of the Indian Point Formation, both of which have recognized oil potential at Galt.
“While the short duration DST that recovered 8 barrels of light oil from the upper part of the Forillon reservoir demonstrates the oil potential of this well, this volume of recovered oil should not be used to estimate any potential daily production rate from the tested interval. This DST was performed in the uppermost portion of the Forillon Limestone reservoir where vuggy/fracture porosity with significant oil shows were observed in drill cutting samples. In the horizontal leg, the abundant natural fractures and oil shows observed in the lower portion of the Forillon Limestone and the upper portion of the Indian Point Formation are the subject of ongoing evaluation operations. These operations should ultimately provide the necessary information as to the next steps in this well.” said Mr. Peter Dorrins, Junex’s President & Chief Executive Officer.
The evaluation operations remain to be completed. In order to undertake these in accordance with existing regulations, Junex will soon be submitting a request to the Quebec Ministry of Energy and Natural Resources for the required completion permit. After receipt of this completion permit, Junex will continue with evaluation operations in this well.
In Junex’s opinion, the drilling of this well in the more structurally-complex area near this fault zone offered an increase in the probability of intersecting both a greater number of natural fractures and hydrothermal dolomite reservoir rock. As such, it was recognized that the structural geology to be tested by the Galt No. 5 Horizontal well would be different than all other wells drilled to date by the Company on the Galt Oil Property.
Mr. Dorrins continued: “If the planned evaluation operations indicate that the lower portion of the Forillon Limestone and the upper portion of the Indian Point Formation in the horizontal leg in Galt No. 5 can be commercially produced at this time, then we will complete the well in the lower Forillon and upper Indian Point. If the results from the evaluation indicate the contrary, then we have the option to drill a second horizontal leg into the upper portion of the Forillon Limestone reservoir, which proved productive at commercial rates in the Galt No. 4 Horizontal discovery well. Considering that the Galt No.5 Horizontal well was drilled well below budget, there remains adequate capital in the budget to drill this second horizontal leg if it is required.”
3D Seismic Program
This 37 km2 3D seismic survey is being undertaken to locate future horizontal wells on the Galt Oil property, including the Galt No. 6 and No. 7 horizontal wells that form part of the current phase of activity at Galt. Field operations on the 3D seismic program are advancing according to schedule and budget. Junex anticipates commencing data acquisition activities soon. This new seismic data will also aid in better defining the nature of the reservoir in the vicinity of the Galt No. 4 and No. 5 Horizontal wells and should provide valuable input about future operations in these wells should they be required. The Company forecasts that the data will be fully acquired, processed and interpreted by December 2015.
Junex is a junior oil and gas exploration company that holds exploration rights on approximately 5.2 million acres of land in the Appalachian basin in the Province of Quebec, including the Galt Oil Property on the Gaspé Peninsula in eastern Quebec, landholdings on Anticosti Island in the Gulf of St. Lawrence and landholdings in the St. Lawrence Lowlands between Montreal and Quebec City. In parallel to its exploration efforts in Quebec and expansion of its exploration activities elsewhere, the company operates a drilling services division.
Forward-Looking Statements and Disclaimer
Certain statements in this press release may be forward-looking. Forward-looking statements are based on the best estimates available to Junex at the time and involve known and unknown risks, uncertainties and other factors that may cause Junex’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. A description of the risks affecting Junex’s business and activities appears under the heading “Risks and Uncertainties” on pages 7 to 10 of Junex’s 2014 annual management’s discussion and analysis, which is available on SEDAR at www.sedar.com. No assurance can be given that any events anticipated by the forward-looking information in this press release will transpire or occur, or if any of them do so, what benefits that Junex will derive therefrom. In particular, no assurance can be given as to the future financial performance of Junex. Junex disclaims any intention or obligation to update or revise any forward-looking statements in order to account for any new information or any other event. The reader is warned against undue reliance on these forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Mr. Peter Dorrins
President & Chief Executive Officer
Mr. Dave Pepin
Vice President – Corporate Affairs